Human Resources

Annual Salary Review

Policy Information
  • Issue Date: August 26, 2004
  • Revision Date: December 16, 2015
  • Primary Contact: Director of Human Resources
  • Responsible Member of Directorate: President and Director
  • Responsible Office: Human Resources
Policy Statement

Eligible employees of the Institution will be considered for a merit increase for demonstrated performance within the year being reviewed. A cut-off hire date will be established as part of the merit increase process to identify those employees considered "new hires." This date is typically at least four months prior to the merit increase effective date. Separate merit increase guidelines will be set for new hires.



Reason for Policy

Performance reviews are the most important part of any merit-based salary program. With this in mind, all employees must receive an annual performance evaluation completed by supervisors. Recognition for performance is the basis of the Annual Salary Review.



Contents
Policy Information
Policy Statement
Reason for Policy
Procedures


Procedures

I. Eligibility

Recognition for performance is the basis of the Annual Salary Review.  Eligible employees of the Institution shall be considered for a merit increase for demonstrated performance within the year being reviewed. A cut-off hire date will be established as part of the merit increase process to identify those employees considered "new hires." This date is typically at least four months prior to the merit increase effective date. Separate merit increase guidelines will be set for new hires.

II. Establishment of Annual Merit Increase Guidelines

a.  On an annual basis, the Directorate sets general guidelines for Department Chairs, Administrative Managers and Center Directors to use in conducting performance reviews and recommending merit increases. The Director of Human Resources and/or her/his designee provides compensation and economic information to the President and Director to assist with the formulation of annual guidelines.

b. Guidelines will include:

i. The percentage each department may increase their annualized salary budget by.
ii. Recommended merit percentage increase choices based on performance ratings.
iii. The merit increase that may be given to newly hired employees and the cut-off hire date for identifying those considered "new hires."
iv. If approved, any additional money available to departments to further reward outstanding performance.
v. The maximum merit increase allowed.

c. The Director of Human Resources and/or her/his designee will establish the salary review schedule and communicate this schedule along with approved guidelines to Department Chairs, Administrative Managers and Center Directors.

III. Performance Evaluations

a. Performance reviews are the most important part of any merit-based salary program. With this in mind, all employees must receive an annual performance evaluation completed by supervisors. This process must be completed prior to department salary reviews. (See Performance Evaluation, for more information).

IV. Salary Recommendation Submissions

a. The Director of Human Resources and/or her/his designee will provide Department Chairs, Administrative Managers and Center Directors with a listing of all employees in their department/group with recent employment and compensation data.

b. The Department Chair, Administrative Manager or Center Director, with the assistance of the immediate supervisors, will review all employees for performance and will make merit increase recommendations based upon this performance review and established guidelines.

c. Salary recommendations must be submitted to the Director of Human Resources and/or her/his designee by the set deadline and in the format outlined in the annual guidelines.

d. The Director of Human Resources and/or her/his designee, will conduct an initial review of all recommendations to ensure that guidelines have been followed. If discrepancies are found, s/he will follow up with the department to reconcile the data or recommend alternative solutions. S/he will enter the data into salary spreadsheets, create statistical graphs, and compile all data for the review process. S/he will provide information to the Directorate to show the actual, overall increases to salary budgets submitted by each department to insure that the overall salary budget increase is in keeping with the approved guidelines.

V. Salary Review

a. Salary recommendations for the Scientific and Technical Staff are reviewed during a meeting attended by the Directorate, Department Chairs, the Director of Human Resources and/or her/his designee, and the Executive Assistant to the Director of Research.

b. Salary recommendations for science department direct reports, such as Administrative Professionals and Department Administrators, are reviewed during a meeting attended by the Director of Research, the Department Chair, the Department Administrator, the Director of Human Resources and the Compensation & Employment Services Manager.

c. Other personnel are reviewed during a meeting attended by the Directorate, the Director of Human Resources, and/or her/his designee.

d. Changes to recommended merit increases may be made during any of the meetings mentioned above.

e. If a Department Chair, Administrative Manager or Center Director wishes to recommend a change in merit increase at a time other than one of the meetings mentioned above, the Director of Human Resources is to be advised in writing as to the reason. Any salary change will be subject to review and approval by the appropriate member of the Directorate.

f. Authority to approve merit increase recommendations is delegated to the appropriate members of the Directorate.

g. From time to time, the Compensation Committee of the Board of Trustees may elect to approve a separate performance award in addition to an individual’s annual merit increase to recognize significant performance contributions to the institution that go beyond the normal and typical job responsibilities.

VI. Approval, Notification, and Implementation

a. The Director of Human Resources and/or her/his designee will provide final merit increase recommendations to the Controller for inclusion with the annual budget submission to be approved by the Executive Committee of the Board of Trustees.

b. When and if the annual salary recommendations have been approved, and after confirmation from the Office of the Vice President for Operations and Chief Financial Officer, the Director of Human Resources and/or her/his designee, will notify Department Chairs, Administrative Managers and Center Directors.

c. The Director of Human Resources, and/or her/his designee, will provide the Human Resources Information System (HRIS) Staff with the approved salary figures to coordinate updates to the appropriate systems, will create notification memos for individual employees, and will conduct a quality control review for electronic data accuracy.

d. The effective date of merit increases is typically at the start of the first pay period of the upcoming calendar year.

Should you require assistance in the interpretation of this procedure, please contact the Director of Human Resources.


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